Skoda's Technical Know-How Licence To Indian Unit Not Consulting Engineer Service: CESTAT Mumbai

The Mumbai Bench of the Customs, Excise, and Service Tax Appellate tribunal (CESTAT) has held that Skoda Auto Volkswagen India Pvt. Ltd.'s licence to use technical know-how, technical documentation, and trademarks from its Czech parent company did not amount to a "Consulting Engineer Service" under the Finance Act, 1994. The bench observed that the arrangement was merely a licence to use pre-existing intellectual property and not a contract for engineering advice or consultancy.Judicial Member...

LIC Not Liable To Pay Service Tax On Premiums Retained After Policy Lapse: CESTAT Mumbai

The Mumbai Bench of the Customs, Excise and Service Tax Appellate Tribunal (CESTAT) has ruled that the Life Insurance Corporation of India (LIC) is not liable to pay service tax on premiums retained after insurance policies lapse or are repudiated. It held that retaining such amounts does not amount to a taxable service of "agreeing to tolerate an act" under Section 66E(e) of the Finance Act, 1994.A coram of Judicial Member S.K. Mohanty and Technical Member M.M. Parthiban observed that there was...

Coal Beneficiation Not Taxable As Business Auxiliary Service Before June 1, 2007: CESTAT Delhi

The Customs, Excise and Service Tax Appellate Tribunal (CESTAT), New Delhi has recently held that beneficiation and washing of coal could not be taxed under the category of Business Auxiliary Service for the period prior to June 1, 2007. Relying on an earlier case involving the taxpayer beore it, the tribunal ruled, "In that circumstance, reliance has been placed in appellant's own case for the earlier case(supra), we hold that the activity of beneficiation/ washing of coal does not fall under...

NBFC's VCF Investment Profits Not Service Taxable Though Clubbed With Management Fees: CESTAT Kolkata

The Kolkata Bench of the Customs, Excise and Service Tax Appellate Tribunal (CESTAT) recently reiterated that the nomenclature used in an assessee's books of account cannot determine whether a transaction is liable to service tax.Holding that the Revenue had failed to establish that profits earned by an NBFC from investing in a Venture Capital Fund were consideration for a taxable service, the bench observed, "The revenue has relied upon the accounting nomenclature to confirm the demand on the...

CA-CPT, ICWA Foundation Coaching Eligible For Service Tax Exemption: CESTAT Hyderabad

The Customs, Excise and Service Tax Appellate Tribunal (CESTAT), Hyderabad has held that coaching imparted for CA-CPT, ICWA Foundation and Intermediate (10+2) examinations is exempt from service tax under the 2011 exemption notification. It held that these courses lead to educational qualifications recognised by law and that the notification does not confine the benefit to the final stage of an educational programme.A coram of Judicial Member Angad Prasad and Technical Member P. Anjani Kumar...

Revenue's Appeal Against CESTAT's Service Taxability Ruling Lies Before Supreme Court: Delhi High Court

The Delhi High Court has held that an appeal against a CESTAT order determining the taxability of a particular service is not maintainable before the High Court and must instead be filed before the Supreme Court under Section 35L of the Central Excise Act, 1944.A Division Bench of Justices Anil Kshetarpal and Shail Jain relied on Commissioner of CGST and Central Excise, Delhi South v. M/s Spicejet Ltd., SERTA 2/2024 to conclude,“where the CESTAT determines the taxability of a particular service,...

CESTAT Hyderabad Quashes Service Tax Demand On UltraTech Over Railway Wagon Freight Concession

The Hyderabad Bench of the Customs, Excise and Service Tax Appellate Tribunal (CESTAT) has held that the freight concession granted by the Indian Railways under the Liberalized Wagon Investment Scheme (LWIS) is a policy incentive and not consideration for any taxable service.A coram of Judicial Member Justice Angad Prasad and Technical Member P. Anjani Kumar, giving relief to UltraTech Cement observed,"We hold that the appellant has not rendered any taxable service to the Indian Railways under...

CENVAT Credit Cannot Be Denied Solely Because Running Account Bills Are Not Invoices: CESTAT Delhi

The Customs, Excise and Service Tax Appellate Tribunal (CESTAT), New Delhi has held that CENVAT credit cannot be denied merely because running account bills are not conventional invoices, provided they contain the prescribed particulars required under law. Observing that, "The crux of the matter is that the authority needs to be satisfied about the relevant details/particular and not the form of the document," the tribunal ruled in favour of the Rajasthan Housing Board.Judicial Member Binu Tamta...

CESTAT Mumbai Holds Lease Rentals Collected By Asian Paints For Tinting Machines Not Liable To Service Tax

The Mumbai Bench of the Customs, Excise and Service Tax Appellate Tribunal (CESTAT) has recently granted relief to Asian Paints Ltd., holding that service tax could not be levied on lease rentals collected from dealers for tinting machines after finding that the arrangement amounted to a deemed sale. The tribunal held, "I have no hesitation in holding that the transaction in the case before us is of 'deemed sale' as per Article 366 (29A)(d) of the Constitution of India." The order was passed...

CESTAT Chennai Allows CENVAT Credit To Citibank For Cleaning And Event Services After 2011 Amendment

The Chennai Customs, Excise and Service Tax Appellate Tribunal (CESTAT) on 22 July held that Citibank N.A. is entitled to CENVAT credit on cleaning services, general insurance services, convention services, event management services and mandap keeper services. A Bench of Technical Member M. Ajit Kumar and Judicial Member Ajayan T.V. partly allowed the bank's appeals, while holding that CENVAT credit cannot be claimed on club or association services, health and fitness services, outdoor...

CESTAT Kolkata Sets Aside Service Tax Demand On Railway Cleaning and Housekeeping Services

The Customs, Excise, and Service Tax Appellate Tribunal (CESTAT), Kolkata, has set aside the service tax demand raised against Khagaul Loco Labour Co-Operative Society after holding that the services provided by it to the Indian Railways were either not taxable, exempt from service tax, or part of the demand was barred by limitation.The tribunal also rejected the Department's allegation that the society had collected and retained service tax from the Railways, finding no evidence to support the...

One-Day Delay In Revised Service Tax Return Filing Bars Refund Claim Under CGST Act: CESTAT New Delhi

The New Delhi Customs, Excise and Service Tax Appellate Tribunal (CESTAT) on 21 July held that a one-day delay in filing a revised ST-3 return under Rule 7B of the Service Tax Rules, 1994 cannot be condoned as a procedural lapse for claiming refund of transitional CENVAT credit under Section 142(9)(b) of the Central Goods and Services Tax (CGST) Act, 2017.A Bench comprising Judicial Member Binu Tamta and Technical Member Hemambika R. Priya upheld the order rejecting the refund claim of TV Today...